VIRUDHUNAGAR: Calendar prices are set to rise by 6% due to the hike in GST on paper from 12% to 18%. Sivakasi accounts for 80-85% of Tamil Nadu’s calendar production. This year, the market has seen the launch of over 200 calendar designs across 20 different shapes.
Calendar prices have already risen by at least 5% due to various factors, most significantly due to the surge in electricity costs. The decision taken at the 56th GST Council meeting to hike GST of paper from 12% to 18% pushes the total increase to around 11%.
K Jeyasankar, president, Tamil Nadu Calendar Manufacturers Association, welcomed the exemption of education-related paper products from the GST hike. However, he said that GST on paper, has been raised to 18%, which may result in 6% increase in calendar prices.
“The hike will impact micro and small scale industries that depend on paper as a raw material, and business is likely to decline by at least 3-5%,” he said. He said the union government must reconsider the hike as it would adversely affect the industries.